Tag: Retirement success plan
Step 1 The Retirement Success Process: Investment and Risk Management
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
foreign welcome back to the retirement income show I'm Mark Elliott here with the CEO and founder of Oak Harvest Finance group we're talking about the retirement success plan once it's in place it's not done it's not finished it's always changing and evolving with you and your life so it's really important to get this in place to have a plan give you more confidence and and be more comfortable in retirement with maybe hopefully not so much stress about where you are again that number is 800-822-6434 to learn more 800-822-6434 Troy's breaking down what is exactly the retirement success plan so it starts with the investment plan then it's the income plan then it's a tax plan then it's a health plan and then it is the estate plan so I want to kind of tie together why that sequence is is important just briefly but if you don't understand if you don't have a proper risk management structure in place obviously you open the potential for losses beyond your willingness to stay the course now it's not just stay the course with the Investments it's stay the course with your retirement success plan with your financial plan so we have to Define what those guard rails are first this is the process of understanding where your risk limitations are so if you think about you're going down a highway and of course you have guard rails on each side and if you go off the highway those guard rails are there to protect you from going into the opposing Direction on the freeway now in retirement when we're talking about managing risk when we can identify these emotional guardrails so are you willing to see and I and I'd like to Define risk in terms of dollars not percentages and I'll tell you why in a minute but let's say you have a million dollars saved for retirement if all that money is in your 401k first and foremost we have to realize that it's not really a million dollars because every dollar in there is tax deferred so we have to understand we're going to address that as part of this process but when we talk about risk we have to understand that not all of those dollars are yours you have a junior partner on that account we want to keep them a junior partner we don't want Uncle Sam to become a senior partner or a majority share owner of your retirement account but just understanding that that not all of that money is yours that you do have a junior partner in that account it ties into this risk management discussion a little bit so when we talk about risk in terms of dollars are you willing to see your account go down two hundred thousand just a question could be yes could be no it doesn't there is no right or wrong answer but by asking these questions we can start to Define where your emotional guard rails are because the number one thing that you can do when it comes to ruining a financial plan or a retirement plan is to have more risks so your accounts go down more than you can mentally tolerate emotionally withstand and then you sell get out sit in cash for two or three years miss the rebound and now you're you're in a you know you're in a bad bad bad spot I can't tell you I mean we've been through this so many times with clients and conversations about you know Troy I've been watching the news I think we're going into recession we need to get out of the market we need to do this or my accounts are down 10 or 20 or when covid hit we there's a plan for for a proper plan accounts for the markets being down 20 or 30 percent so when we talk about risk management and we're asking you these questions the reason why is because we're already planning for recessions we're planning for potential Market crashes this is part of life okay we cannot avoid these things unless we completely stay in cash and if that's the case you might as well bury the money in the backyard and just spend whatever you can and hope you don't run out and eat rice and beans for for for retirement and that's not how most of our clients that's not how most of you want to spend you know after working for an entire career you want to spend your life so are you okay with a 200 000 decline by the way which is 20 and the reason why I Define it in terms of dollars is because a long time ago I had a client come in well it was a prospective client at the time and like most financial advisors we would talk about it in terms of percentages and and we said are you okay with a 10 or 20 decline he said you know what 20 is pretty much my Max and he had around a million dollars so then I I just happened to put it in terms of dollars and I said okay so if your accounts go down two hundred thousand dollars you're okay with that and he said he said no Troy he said I would fire you on the spot and so that you know for me it connected a Big Dot It was kind of a big evolution in my career when I was younger because I realized I'm a financial guy I do this every single day I think in terms of percentages and statistics and and but most people think in terms of dollars so when we ask you that question you say yes I'm okay with a 200 000 or 100 000 or maybe it's not even close to that or maybe it's much much much more what that does for us is it helps to Define what type of portfolio we need to construct so emotionally there's a small probability that it is going to hit your your downside guard ramp and if we can go through retirement and not ever hit that downside guard rail well there's a very good chance from our experience that you're going to stay the course you're going to stick with your plan and if you can stick with your plan you have a much higher probability of success in retirement this is why we call it the retirement success process this is why we call it a retirement success plan this is what we want to deliver to you so now I said I wanted to talk a little bit about the sequence and why risk management in investment planning comes first if we don't and in most simple terms if if your money let's say you have a million bucks and you never had to take anything out if you average four percent versus nine percent at higher rates of return you obviously can expect your accounts to grow to a larger value that means the income planning is impacted that also means that now your tax planning is impacted so we can't build an income plan or a tax plan without first understanding an estimated reasonable expected return for a combination of Securities inside a portfolio so step one has to be this risk management discussion which then can lead us to the investment construction of your portfolio which then gives us a pretty good idea of expected return upside downside deviation so we can now start talking about income planning we can actually project and do a sensitivity analysis on tax planning based on different account levels let me break that down for you before we get into the tax planning section later on the show if you have a million dollars in your IRA you are forced to start taking a certain percentage out it's around four percent at age 72 but as you get to be 74 76 77 you're required to distribute a larger and larger percentage so if your million grows to 1.5 you take let's say four percent of that out that's a that's a number that is less than if your IRA grows to 2 million so the more aggressive your portfolio is or the higher expected return the more we should anticipate that require minimum distribution being a larger number that rmd is the amount you're forced to take out and pay taxes on we've seen clients I I'd like to phrase this for prospective clients because we address this with you as a client this is part of the retirement success process and the retirement success plan but so often when someone comes in here and they've done a pretty good job saving they have eight hundred thousand they have a million they have two or three million when we start to do this analysis if you don't address this tax problem and it is a tax problem it can be you know a tax nightmare for many of you those rmds when we get out to be 75 and 77 or 78 a hundred thousand hundred and fifty thousand two hundred thousand now you're taking that money out you're probably not spending that much on top of Social Security on top of any rental income or real estate income or pension or dividend or interest or any other income that you have outside of your retirement account and we've seen many people be in a much higher tax bracket and have much more income in their 80s than they ever had throughout their entire life up to that point and it's because of a lack of planning so that's what we're trying to get ahead of so we have to understand the risk structure of our portfolio and how we manage that risk so we can keep you on course we can keep you on schedule with your plan that then gives us an idea of a range of expected returns based on basic financial planning Concepts from there we can develop that income strategy and income is not just Social Security it's not just how much to take out don't get me started on the four percent rule but it is also from which accounts and then we get into the taxes so if you don't have a retirement success plan give us a call 1-800-822-6434 we're going to walk you through this process if you become a client you will have this plan in place that deals with risk Investments taxes income along with the rest of the retirement success plan 1-800-822-6434 Oak Harvest Financial Group check out the website check out the YouTube channel Oak Harvest Financial Group so we're talking about the retirement success plan Troy still got a lot to get to stay with us we're back in one minute investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]
How To Save $350k In Taxes In Your Retirement Planning and Live Your Retirement DREAM!
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
does conserving over 350 000 in potential tax obligations sound great to you in retired life I'' m going to reveal you how quickly we can obtain that done so this is the pair that came to see us and also they would like to know do I have sufficient can I retire just how do I pay less tax obligation after going with the scenario we hit the button ends up that they only have regarding a 65 probability of success our work is to get this number up means more than 65 percent so we can obtain you retired and a lot of the moment that indicates overlaying a tax obligation strategy developing a new earnings plan changing just how the Investment Profile is structured and all of this with each other is what we call your retired life success plan so when we take a look at the tax obligation strategy if we continue down the conventional wisdom it'' s an approximated 550 000 of taxes yet if we check out a suggested tax technique to save that approximated 350 000 we get the taxes to regarding 173 throughout retired life in enhancement to that we have an approximated ending balance of regarding 2.5 versus 1.7 by carrying out the tax plan in addition to adjusting when they intend on taking social security as well as creating a real income strategy so they understand when where and also just how much earnings to withdraw as well as changing the portfolio to make sure the quantity of risk in there and also the expected development is appropriate with their capability to stay in the we do all that which'' s what we call the retirement success plan and also that obtains them approximately a 99 likelihood of success to get started with your very own personalized retirement success strategy click the web link in the description below to arrange a see with among our experts that has a fiduciary duty to place your interests initially thanks [Songs]
Step 1 The Retirement Success Process: Investment and Risk Management
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
foreign welcome back to the retired life income show I'' m Mark Elliott right here with the chief executive officer as well as founder of Oak Harvest Money group we'' re speaking concerning the retirement success strategy once it'' s in area it'' s refrained it ' s not finished it ' s always transforming and advancing with you and your life so it'' s really crucial to obtain this in position to have a plan give you much more confidence and as well as be a lot more comfortable in retirement with perhaps with any luck not so much stress and anxiety concerning where you are once more that number is 800-822-6434 to discover more 800-822-6434 Troy'' s damaging down what is specifically the retired life success plan so it starts with the financial investment strategy after that it'' s the earnings plan after that it'' s a tax obligation strategy then it ' s a health insurance and after that it is the estate plan so I intend to type of connection together why that sequence is is essential just quickly however if you don'' t understand if you wear ' t have a correct danger management framework in position certainly you open the potential for losses past your readiness to persevere now it'' s not just stay the training course with the Investments it ' s remain the training course with your retired life success strategy with your monetary strategy so we need to Define what those guard rails are initially this is the procedure of recognizing where your threat restrictions are so if you think of you'' re decreasing a highway as well as certainly you have guard rails on each side and if you go off the highway those guard rails exist to protect you from going into the opposing Direction on the freeway currently in retirement when we'' re discussing handling threat when we can recognize these psychological guardrails so are you going to see as well as I as well as I'' d like to Define threat in terms of bucks not percents and I'' ll inform you why soon but'allow ' s say you have a million bucks saved for retired life if all that money is in your 401k most importantly we have to realize that it'' s not truly a million dollars because every dollar in there is tax obligation deferred so we have to comprehend we'' re mosting likely to resolve that as part of this procedure however when we chat regarding risk we need to comprehend that not every one of those dollars are yours you have a junior companion on that account we want to maintain them a younger companion we wear'' t want Uncle Sam to come to be an elderly partner or a bulk share proprietor of your retirement account but simply recognizing that that not every one of that money is your own that you do have a jr companion in that account it connects right into this threat monitoring conversation a bit so when we talk regarding risk in terms of bucks are you happy to see your account go down 2 hundred thousand just an inquiry might be of course might be no it doesn'' t there is no right or incorrect answer however by asking these concerns we can begin to Define where your psychological guard rails are because the leading thing that you can do when it comes to spoiling a monetary strategy or a retirement is to have even more dangers so your accounts decrease greater than you can psychologically endure psychologically stand up to and afterwards you market get out being in cash for 2 or three years miss out on the rebound and currently you'' re you ' re in a you recognize you ' re in a bad negative negative spot'I can ' t inform you I mean we ' ve been with this a lot of times with customers and discussions regarding you recognize Troy I ' ve been seeing the information I believe we'' re going right into recession we require to leave the marketplace we require to do this or my accounts are down 10 or 20 or when covid hit we there'' s a prepare for for a correct strategy accounts for the marketplaces being down 20 or 30 percent so when we talk about risk administration as well as we'' re asking you these inquiries the reason that is since we'' re already preparing for recessions we'' re preparation for possible Market crashes this belongs to life all right we can not prevent these points unless we entirely stay in cash and if that'' s the instance you may too hide the cash in the backyard and just spend whatever you can and wish you don'' t run out and also eat rice as well as beans for for for retirement and that'' s not how the majority of our clients that ' s not how a lot of you desire to spend you understand after functioning for a whole job you wish to spend your life so are you fine with a 200 000 decrease by the way which is 20 as well as the reason I Specify it in regards to dollars is due to the fact that a long period of time ago I had actually a customer been available in well it was a potential client at the time and like the majority of economic consultants we would talk regarding it in regards to percentages and and we claimed are you fine with a 10 or 20 decrease he said you recognize what 20 is quite much my Max as well as he had around a million bucks so after that I I simply took place to place it in regards to bucks and also I stated okay so if your accounts go down 2 hundred thousand dollars you'' re alright with that and he said he claimed no Troy he said I would certainly fire you on the area therefore that you know for me it linked a Huge Dot It was type of a large development in my occupation when I was more youthful due to the fact that I understood I'' m an economic individual I do this each and every single day I believe in regards to percentages as well as stats and as well as yet the majority of people believe in terms of bucks so when we ask you that question you state yes I'' m all right with a 200 000 or 100 000 or perhaps it'' s not also near that or possibly it'' s much much much extra what that does for us is it helps to Define what sort of profile we require to create so emotionally there'' s a tiny possibility that it is mosting likely to hit your your disadvantage guard ramp and if we can go via retired life and never hit that disadvantage guard rail well there'' s an excellent opportunity from our experience that you'' re mosting likely to persevere you'' re mosting likely to stick with your plan and also if you can stick to your plan you have a much higher possibility of success in retirement this is why we call it the retired life success procedure this is why we call it a retired life success plan this is what we wish to supply to you so currently I claimed I wished to chat a bit about the series and why threat management in investment preparation precedes if we don'' t and in the majority of straightforward terms if if your money allow'' s claim you have a million bucks as well as you never ever needed to take anything out if you average four percent versus nine percent at greater prices of return you clearly can expect your accounts to expand to a bigger worth that indicates the income preparation is influenced that additionally means that currently your tax planning is influenced so we can'' t construct a revenue strategy or a tax obligation plan without initial understanding an approximated affordable expected return for a mix of Stocks inside a profile so step one needs to be this risk administration discussion which after that can lead us to the investment construction of your profile which after that gives us a pretty excellent suggestion of expected return benefit drawback discrepancy so we can now begin chatting regarding income planning we can actually project as well as do a sensitivity evaluation on tax planning based on various account levels allow me break that down for you before we enter into the tax preparation section later on the program if you have a million bucks in your IRA you are compelled to start taking a certain portion out it'' s around four percent at age 72 yet as you obtain to be 74 76 77 you'' re called for to distribute a larger as well as larger portion so if your million expands to 1.5 you take allow'' s claim four percent of that out that'' s a that ' s a number that is less than if your IRA expands to 2 million so the extra hostile your profile is or the higher expected return the more we need to prepare for that call for minimum circulation being a bigger number that rmd is the amount you'' re forced to obtain as well as pay taxes on we'' ve seen customers'I I ' d like to expression this for prospective clients since we resolve this with you as a client this belongs to the retirement success procedure and the retirement success strategy yet so usually when somebody comes in below and also they'' ve done a respectable job conserving they have eight hundred thousand they have a million they have two or three million when we start to do this analysis if you put on'' t address this tax obligation problem and it is a tax obligation problem it can be you know a tax obligation headache for a lot of you those rmds when we get out to be 75 and also 77 or 78 a hundred thousand hundred and also fifty thousand two hundred thousand now you'' re taking that cash out you'' re possibly not spending that much in addition to Social Protection in addition to any rental revenue or realty revenue or pension or returns or passion or any type of other earnings that you have beyond your pension and also we'' ve seen lots of people remain in a much greater tax obligation brace and also have much even more revenue in their 80s than they ever had throughout their whole life up to that point and also it'' s due to an absence of intending so that'' s what we ' re attempting to be successful of so we need to recognize the risk structure of our profile and exactly how we handle that threat so we can maintain you on training course we can keep you on timetable with your plan that after that gives us a suggestion of a range of expected returns based on fundamental monetary preparation Principles from there we can create that income strategy as well as earnings is not just Social Safety it'' s not simply just how much to secure wear'' t obtain me started on the 4 percent regulation however it is additionally where accounts as well as after that we enter the taxes so if you wear'' t have a retirement success strategy give us a phone call 1-800-822-6434 we ' re going to walk you with this process if you come to be a customer you will have this strategy in position that deals with risk Investments taxes income in addition to the remainder of the retired life success strategy 1-800-822-6434 Oak Harvest Financial Group examine out the site check out the YouTube network Oak Harvest Financial Team so we'' re discussing the retirement success plan Troy still obtained a great deal to reach remain with us we'' re back in one minute investment advising solutions offered with Oak Harvest Financial Team LLC Oak Harbor'' s Financial Group is an independent Financial Solutions company that assists individuals create retirement approaches using a range of insurance policy and financial investment products investing includes risk including the loss of principal any recommendations to security advantages or lifetime earnings generally refer to fixed Insurance policy products never ever Stocks or investment items insurance and also annuity product assurances are backed by the financial toughness and claims paying ability of the releasing insurer Oak Harbor'' s Financial Group LLC is not allowed to supply a No declaration made throughout this show will make up tax obligation or lawful guidance you should speak with a certified expert before making any type of decisions regarding your individual situation we are not associated with the United States federal government or any type of governmental company this radio program is a paid positioning international [Music]
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